Soda Tax Morphs Into Sales Tax

The District of Columbia Council voted down a proposal to tax sugar-sweetened beverages, but turned around and passed a bill extending the city’s 6 percent sales tax to all “non-alcoholic beverages with natural or artificial sweeteners.”

The original proposal would have added 10 to 60 cents to the price of containers of full-sugar soda, punch or sports drink. The new bill taxes all sweetened beverages, even diet sodas without sugar. If it passes the final vote, the new tax would be easier to administer and will raise revenue, but it will not be the disincentive to sugar consumption the original bill sought to create. Sugary drinks contribute to obesity, a major American health problem.